We recently had a break of structure on gold, creating a pool of liquidity on the downside. Gold recently tested off an order block and started moving to the downside on the 1h time frame. But on the smaller timeframes just above that previously, evidence that manipulation candles have come into play can be seen much clearer. The candle that look out liquidity on the smaller times may get mitigated before price starts to move lower. There are two potential entry points I've marked out, an IC on the 15 min timeframe, and an IC on the 5 min. The first take profit target is a 1:12 risk to reward which is more likely to play out, even if it's a temporary move. The other two are a bit more ambitious, but if this is truly a break of structure then hopefully we can see price make it's way the eventually.
Also looking at both sides of the coin, there is still a lot of imbalance in price above the entry area, and on the daily timeframe price looks very bullish. So there is also potential that price could go past entry and stop loss area to rebalance price first before making its way down eventually, hence the low risk, high reward setup.
Also looking at both sides of the coin, there is still a lot of imbalance in price above the entry area, and on the daily timeframe price looks very bullish. So there is also potential that price could go past entry and stop loss area to rebalance price first before making its way down eventually, hence the low risk, high reward setup.